Bitcoin Soars to $87,600 as Dollar Weakens and Economic Fears Mount

Bitcoin Rebounds Amid Dollar Weakness

According to Bloomberg.com, Bitcoin surged to its highest level since April 2, reaching $87,600 on Monday morning in Singapore. This 3% increase came as the U.S. dollar weakened due to President Donald Trump's efforts to remove Federal Reserve Chairman Jerome Powell. The cryptocurrency's rebound erased most of the losses incurred after Trump's earlier tariff announcements, which had disrupted global markets.

The weakening dollar, driven by fears over the Federal Reserve's independence, has created favorable conditions for Bitcoin and other assets. Analysts suggest that the uncertainty surrounding Powell's position has led to increased risk-taking in financial markets, benefiting Bitcoin significantly.

“The move in Bitcoin to $87,000 appears to be driven by a sharp drop in the U.S. dollar and a +2% rally in gold, both triggered by Trump's push to replace Fed chair Powell,” said Markus Thielen, founder of 10x Research.

Key Takeaway: Bitcoin's price surge highlights its growing role as a hedge against economic and political uncertainty, particularly during periods of dollar weakness.

Over 55 Million Investors Gain Bitcoin Exposure Through MSTR

CCN.com reports that over 55 million U.S. investors now have indirect exposure to Bitcoin through MicroStrategy's (MSTR) stock. The company holds 531,644 BTC, valued at over $46 billion, making it a popular choice for investors unable to access Bitcoin ETFs or hold BTC directly in tax-advantaged accounts.

MicroStrategy recently added 3,450 Bitcoin worth $292 million, marking its third consecutive Monday purchase announcement. The company financed this acquisition through its ongoing share offering, raising $285.7 million in net proceeds. Founder Michael Saylor remains bullish, predicting Bitcoin could reach $13 million per BTC by 2045, with a market cap of $500 trillion.

Key Takeaway: MicroStrategy's aggressive Bitcoin strategy has made it a key on-ramp for institutional and retail investors seeking exposure to the cryptocurrency market.

Bitcoin Leads Market Rally Amid Fed Concerns

CoinDesk highlights Bitcoin's rise to $87,200, a 2% increase, as the dollar index hit a three-year low. The rally was fueled by reports of President Trump exploring ways to remove Federal Reserve Chairman Jerome Powell, raising concerns over the Fed's independence. Other cryptocurrencies, including XRP, ETH, and ADA, also saw gains of over 1% each.

Gold prices reached a record high of $3,382 per ounce, further indicating market uncertainty. Analysts attribute the synchronized rally in Bitcoin and gold to fears of a weaker U.S. dollar and potential stagflation. Chicago Fed President Austan Goolsbee warned that removing Powell could undermine the Fed's credibility.

Key Takeaway: Bitcoin's performance during this period underscores its potential as a safe-haven asset, particularly during times of economic and political instability.

Gold and Bitcoin Surge After Trump's Statement

Crypto Briefing reports that both gold and Bitcoin experienced significant gains following a statement by President Trump on Truth Social. Gold reached a record $3,385, while Bitcoin climbed to $87,500, marking a 3% increase. Trump's comment, "He who has the gold makes the rules," sparked market reactions amid ongoing U.S.-China tensions and economic uncertainty.

Analysts noted the rare synchronized rally between gold and Bitcoin, suggesting a growing consensus among investors about a weaker U.S. dollar. The Kobeissi Letter highlighted that Bitcoin's behavior during the dollar's decline signals a potential "regime shift," with the cryptocurrency evolving as a store of value.

Key Takeaway: The parallel rally of gold and Bitcoin reflects increasing investor concerns over economic stability and the U.S. dollar's future.

Bitcoin Surges 33% Since 2024 Halving

CoinMarketCap reports that Bitcoin has surged over 33% since its April 2024 halving, where the block reward dropped from 6.25 BTC to 3.125 BTC. Institutional interest and the growth of Bitcoin ETFs have been key drivers of this acceleration. Analysts suggest that the halving-induced scarcity, combined with increased liquidity, could push Bitcoin past $90,000.

Global trade tensions and U.S.-China relations have also influenced market sentiment. Analysts believe that potential interest rate cuts by the Federal Reserve could introduce more liquidity, further benefiting Bitcoin. Despite external pressures, Bitcoin's price movement since the halving has been faster than in previous cycles, indicating a shift in market dynamics.

Key Takeaway: The 2024 halving, coupled with institutional demand, has accelerated Bitcoin's price growth, reshaping traditional market cycles.

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